European study reveals extent of Microsoft ecosystem

An IDC study commissioned by Microsoft for its European Executive Partner event in Lisbon reveals the impact of the software industry on European economies.

In the 19 countries surveyed nine million people are employed in the IT industry, generating $200bn in tax revenue. Of these jobs, just over one third are Microsoft-related. IDC believes that over the next four years a further two million new jobs will be created and an extra $160bn in tax revenues will be collected.

Software makes up only 19.6 per cent of total spending, but represents more than half of all jobs and tax revenue created. IDC estimates total spending in the region is $275bn. By 2008 there will be 5.2m software-related jobs in Western Europe.

Thomas Vavra, software and consulting manager at IDC, said: "We are in the midst of an IT rebound. After the downturn of 2001 and 2002 we are now seeing a healthy return to growth - a trend we expect to see continuing."

In both Hungary and Turkey about 36,000 people are employed in Microsoft-related jobs. In the UK 535,000 people are employed in Microsoft-related jobs or 34 per cent of total IT jobs. In Germany 654,000 people have a Microsoft-related job.

France has the lowest percentage of Microsoft-related jobs with 31 per cent while Estonia and Russia top the league with 54 per cent and 55 per cent respectively.

The study is the third update to IDC's "Economic Impact Model" looking at the IT industry's impact on national economies. The 19 countries surveyed were: Austria, the Czech Republic, Denmark, Estonia, France, Germany, Hungary, Ireland, Israel, Italy, Lithuania, the Netherlands, Poland, Portugal, Russia, South Africa, Spain, Turkey and the UK.

The survey defined IT employment as people working for hardware, software, services or channel firms and those managing IT infrastructure in user organisations. Web designers, venture capitalists and trade mag hacks were excluded. ®